The first question was about lessons learned and how the company has better themselves in moving forward. The second is to show the amazing potential of this company.
Thank you SPICEMAN for your post and questions in Post #3 above.
We have replicated your post below:
Jerry you said the Jet fuel was bought at $84/Barrel with a sales price of $111/Barrel.
That is a gross margin of $27/Barrel. If this deal would have been successful, what would have been Xun's share of the deal. Thanks Spiceman
Question #1: If this deal would have been successful, what would have been Xun's share of the deal.
Response #1: A Point of clarification, the Company or JV002 did not close on a purchase of Aviation Jet Fuel due to the supplier, Filkas Petroleum Resources And Trading Company (FILKAS), failing to deliver and perform per the executed Sales and Purchase Agreement (SPA2). If Filkas had delivered the 1,000,000 barrels of Aviation Jet Fuel to Rotterdam as per the Bill of Lading issued to JV002 and based on a selling price of US$111.00 per barrel that the Major agreed to pay (NWE Platts + premium of $2.00) for the first lift and the remaining SPA2 at NWE Platts +$2.00 on October 10, 2014 FOB Rotterdam, the Company would have had a transactional profit of US$8,624,000.
Conversely, if FILKAS did not breach SPA2, and 1,000,000 barrels of Aviation Jet Fuel was delivered by FILKAS and was sold yesterday, March 12, 2015, per SPA2, FOB Rotterdam, based on a selling price of US$74.00 per barrel (NWE Platts $72 + premium of $2.00), the Company would have had a transactional loss of US$7,500,000.
DISCLAIMER: THE PROFIT AND LOSS IN THE ABOVE EXAMPLES ARE FOR ILLUSTRATIVE PURPOSES HAD FILKAS DELIVERED THE FIRST 1,000,000 BARRELS OF AVIATION JET FUEL TO ROTTERDAM PER THE TERMS AND CONDITIONS OF SPA2, LINK: http://www.idriaenergy.com/files/101531206.pdf AND THAT FILKAS CONTINUED TO FULFIL THE DELIVERY SCHEDULE PER SPA2. THE PROFIT AND LOSS CALCULATED IN THE ABOVE EXAMPLES APPLY ONLY TO THE TERMS AND CONDITIONS OF SPA2 AND THE MARKET CONDITIONS ON THE DATES USED IN THE EXAMPLE. THE PROFIT AND LOSSES ARE NON-INDICATIVE OF PROFIT AND LOSSES THAT MAY OR MAY NOT OCCUR SHOULD THE COMPANY BE SUCCESSFUL IN CLOSING ON AN AVIATION JET FUEL PHYSICAL COMMODITY TRADE.
DISCLAIMER: SUBJECT TO SAFE HARBOR CLAUSE.
We thank you for your interest, support and faith in the Company.
Respectfully,
Xun Energy, Inc.
Jerry G. Mikolajczyk
President and CEO
Thank you SPICEMAN for your post and questions in Post #3 above.
We have replicated your post below:
Jerry you said the Jet fuel was bought at $84/Barrel with a sales price of $111/Barrel.
That is a gross margin of $27/Barrel. If this deal would have been successful, what would have been Xun's share of the deal. Thanks Spiceman
Question #1: If this deal would have been successful, what would have been Xun's share of the deal.
Response #1: A Point of clarification, the Company or JV002 did not close on a purchase of Aviation Jet Fuel due to the supplier, Filkas Petroleum Resources And Trading Company (FILKAS), failing to deliver and perform per the executed Sales and Purchase Agreement (SPA2). If Filkas had delivered the 1,000,000 barrels of Aviation Jet Fuel to Rotterdam as per the Bill of Lading issued to JV002 and based on a selling price of US$111.00 per barrel that the Major agreed to pay (NWE Platts + premium of $2.00) for the first lift and the remaining SPA2 at NWE Platts +$2.00 on October 10, 2014 FOB Rotterdam, the Company would have had a transactional profit of US$8,624,000.
Conversely, if FILKAS did not breach SPA2, and 1,000,000 barrels of Aviation Jet Fuel was delivered by FILKAS and was sold yesterday, March 12, 2015, per SPA2, FOB Rotterdam, based on a selling price of US$74.00 per barrel (NWE Platts $72 + premium of $2.00), the Company would have had a transactional loss of US$7,500,000.
DISCLAIMER: THE PROFIT AND LOSS IN THE ABOVE EXAMPLES ARE FOR ILLUSTRATIVE PURPOSES HAD FILKAS DELIVERED THE FIRST 1,000,000 BARRELS OF AVIATION JET FUEL TO ROTTERDAM PER THE TERMS AND CONDITIONS OF SPA2, LINK: http://www.idriaenergy.com/files/101531206.pdf AND THAT FILKAS CONTINUED TO FULFIL THE DELIVERY SCHEDULE PER SPA2. THE PROFIT AND LOSS CALCULATED IN THE ABOVE EXAMPLES APPLY ONLY TO THE TERMS AND CONDITIONS OF SPA2 AND THE MARKET CONDITIONS ON THE DATES USED IN THE EXAMPLE. THE PROFIT AND LOSSES ARE NON-INDICATIVE OF PROFIT AND LOSSES THAT MAY OR MAY NOT OCCUR SHOULD THE COMPANY BE SUCCESSFUL IN CLOSING ON AN AVIATION JET FUEL PHYSICAL COMMODITY TRADE.
DISCLAIMER: SUBJECT TO SAFE HARBOR CLAUSE.
We thank you for your interest, support and faith in the Company.
Respectfully,
Xun Energy, Inc.
Jerry G. Mikolajczyk
President and CEO
